Iran Oil Minister Resigns as US Blockade Halts Exports

Iran’s Oil Minister Mohsen Paknejad has resigned, citing personal reasons, as the country grapples with a severe decline in oil exports due to intensified US pressure. President Masoud Pezeshkian accepted Paknejad’s resignation on Sunday, after previously rejecting several of his requests to step down, according to state-run Islamic Republic News Agency.

Paknejad’s departure comes as Iran’s oil industry faces unprecedented challenges. A US naval blockade in the Persian Gulf has effectively halted the country’s oil exports, a critical source of revenue. This has forced production cuts and worsened domestic energy shortages, particularly in petrol and natural gas, which have been aggravated by the ongoing war with Washington.

Hamid Bovard, Deputy Oil Minister and Managing Director of the National Iranian Oil Company (NIOC), has been appointed as interim minister. Bovard brings extensive experience, having previously led several NIOC subsidiaries focused on oil and gas production and exploration. However, he inherits a deeply troubled industry, with the US seeking to pressure Iran into ending the seven-month conflict.

The reshuffle also coincides with increased scrutiny of the intermediaries Iran relies on to bypass US sanctions. Iran’s judiciary chief, Gholam-Hossein Mohseni-Eje’i, has criticized the network of so-called “trustees” who facilitate crude oil sales, accusing them of failing to repatriate the proceeds.